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Page added on September 4, 2015
No Deal On Oil Output After Russia’s Putin Meets Venezuela’s Maduro
Russia and Venezuela need to combine efforts to lift oil prices, President Vladimir Putin told his Venezuelan counterpart Nicolas Maduro on Thursday, but refused to spell out any specific action, including output cuts.
The economies of major producers Russia and Venezuela are highly dependent on proceeds from the sale of oil, the price of which has roughly halved since last year due to oversupply and a decision by producer group OPEC not to cut output.
Maduro met Putin in Beijing after attending a military parade to mark 70 years since the end of World War Two in Asia.
“Both parties noted during the meeting that such unstable oil prices are not in the interests of the two countries and, of course, the countries should integrate their efforts in terms of coordination to facilitate a boost in oil prices,” Kremlin spokesman Dmitry Peskov told reporters.
“However, President Putin drew attention to the fact that there could be no direct actions, this is a market process. There are lots of factors which are having an impact and that should be taken into consideration very carefully.”
Maduro had told Putin at the start of the meeting that both Russia and Venezuela were able to stabilise oil prices.
“We can talk about what we can do to stabilise oil market and stabilise prices, what would allow us to overcome the current conditions,” Maduro said.
Moscow has so far been unwilling to deliberately cut its crude oil output to support prices, and the meeting of Putin and Maduro had not been expected to yield any concrete results, a senior Russian source told Reuters on Wednesday.
The Organization of the Petroleum Exporting Countries’ relatively wealthy Gulf members drove the group’s strategy shift last year to allow prices to fall to defend market share.
But a severe recession and shortages of consumer goods have heightened appetite in cash-strapped Venezuela, an OPEC member, for higher oil prices. It has been pushing for a new deal between OPEC and non-OPEC nations to stabilize prices.
Russia, not a member of OPEC, has been ramping up output this year, extracting it at a post-Soviet record high of around 10.7 million barrels per day.
Moscow wants to keep production high to defend its market share, and if it cut output it would, in the short-term at least, lose revenue that it relies on heavily for its budget.
31 Comments on "No Deal On Oil Output After Russia’s Putin Meets Venezuela’s Maduro"
Plantagenet on Fri, 4th Sep 2015 8:49 pm
Interesting that Putin is producing oil at record levels in the middle of this oil glut.
He has no right to complain about the low cost of oil when he is one of the reasons we’re in an oil glut.
Truth Has A Liberal Bias on Fri, 4th Sep 2015 8:57 pm
Russia should just use its paramilitary and black ops assets to topple Saudi Arabia.
Truth Has A Liberal Bias on Fri, 4th Sep 2015 9:03 pm
Good morning plant. It’s just before 7am where you are in India. You got to use the word glut twice in that one. Good job. You’ll have a raging boner all day. I fear for the little Indian boys.
Boat on Fri, 4th Sep 2015 9:24 pm
The oil glut deniers just can’t admit there is not a shortage of oil. They cant admit there wrong about API will getting better as the world supply will be more and more coming from the middle east. All of those middle east oil fields were strangled by geopolitics, not field depletion. Anybody wanna make a wager on World GDP growing. I SAY THE CHEAP OIL WILL GROW THE WORLD IN 2016. Show me a chart short. PS, lol not per capita. I will short birth control products.
Boat on Fri, 4th Sep 2015 9:36 pm
Truth Has A Liberal Bias
Russia should just use its paramilitary and black ops assets to topple Saudi Arabia.
Like the other countries that have been toppled have done so well. Sarcasm intended.
Makati1 on Fri, 4th Sep 2015 10:46 pm
Dream on Boat. You inhabit an very interesting world. Too bad it is not the real one.
There is an oil “glut” of sorts because demand in the West is falling, and the producers are pumping full out to pay the bills. The original idea may have been to cripple Russia, bankrupt the fraking in America or another idea that does not come to mind at the moment, but it seems to have backfired because the plan did not work … yet. 2016 will see the fraking end in the US, I think. But Russia seems to be managing just fine. Remember the adage:
“What doesn’t kill you, makes you stronger”.
GregT on Fri, 4th Sep 2015 11:23 pm
“Show me a chart short. PS, lol not per capita.”
Of course it makes no difference whether there are 5 million of us, or 7.3 billion, it’s the volume of oil that matters, right Boat?
antaris on Fri, 4th Sep 2015 11:34 pm
Boat = Shit For Brains
GregT on Fri, 4th Sep 2015 11:56 pm
Boat said:
“Or do you feel your prep separates you from the rest of the world and you now get the right to use the world wide web to complain about everybody else.’
And I responded:
“Not complaining about everyone else Boat. There are many people that read these forums on a daily basis, who do not post. Those people deserve to hear the truth.”
Which is exactly why people keep shouting down almost everything that you say. You do not speak the truth Boat. You are full of BS.
Boat on Sat, 5th Sep 2015 12:21 am
GregT,
There was no problem with oil 10 years ago, there is no problem now.
I see by the numbers that the doomers on this site have not been to effective at controlling population. I hope you get better at it.
The doomers on this site have had no luck in curtailing pollution and climate change. They go so far as to call others posters names. Alas to no effect.
They slap each other on the back and get excited at every economic downturn but can’t see the world just uses more oil.
They don’t mind using goods and services the modern world provides but scoff at others because they didn’t stock up on the modern day amenities they will need down the road. Somehow they escape the hypocritical thoughts that should creep in.
Boat on Sat, 5th Sep 2015 12:26 am
Mak,
The original idea may have been to cripple Russia, bankrupt the fraking in America or another idea that does not come to mind at the moment, but it seems to have backfired because the plan did not work … yet. 2016 will see the fracking end in the US, I think.
Who cares. Don’t you think that oil in the ground because of less fracking will no be produced at some point at a higher price? You could theorize those countries giving away this oil so cheap are wasting an opportunity to get a higher price down the road.
GregT on Sat, 5th Sep 2015 1:16 am
“You could theorize those countries giving away this oil so cheap”
Again Boat. Oil is not cheap. It is still twice what it has been during non-recesionary periods going back for over 100 years. Cheaper than last November. But not cheap.
Those countries are making twice as much as they were just over one decade ago when conventional oil peaked, which led to the global financial crisis that we still have not yet recovered from, and in all likelihood never will.
You are full of BS Boat. You do not tell the truth.
Makati1 on Sat, 5th Sep 2015 5:21 am
No Boat, most of the oil still in the ground will stay there. Higher prices will not happen unless the economy is about to crash totally and never reset. They are not pumping to waste oil. They are pumping because they have to pay debts and oil at $40 is better than losing their heads.
The world cannot afford $100 oil ever again. Or not for long. When the oil stops, it will be because it is no longer profitable (EROEI = ~1:3) to pump, refine and transport to the end user, not because there is no oil left. Billions of barrels will never see daylight.
Davy on Sat, 5th Sep 2015 7:02 am
Russia is going down with the rest of us. If commodities don’t come back the Russian commodity dominated economy will never recover. Puti’s dream of a greater Russia in a Bric axis will be nothing but a wet dream.
The current demand and supply destruction process is in a dangerous deflationary cycle down in economic descent. It is clearly in motion to us doomers. It may take some time because we are at peak everything including insanity. Peak insanity is important to understand because it allows lies to be propagated. Peak insanity it is the speed of the train heading into the train wreck. We doomers are saying “hey slow down there is a dangerous curve ahead”. Corns are saying the train can handle any curves on the track. Peak everything is another world of limits of growth and declining marginal return of that growth. IOW growth is increasingly wasted vital resources in malinvestment.
The key idea to keep on the radar screen is the dynamic realities of the global system. These realities are the global economy is based on debt and fiat currency. These realities require growth. The global economy is complex with a growing population far in excess to its carrying capacity because of complete dependence on finite depleting resources. This overshoot requires growth to cover growing population and growing consumption pressures. Population rebel if they are prevented from consuming more. Populations want life to improve which means increased consumption and if it doesn’t they rebel.
It is blatantly apparent what is going on with the Brics. I have been crowing this for a year now as the anti-Americans crowed the US was going to crash and burn with the Brics lead by China and Russia were going to form a new world order decoupled from the west. I said all along we are all going down, there is no decouple, and it would likely be the economy that initiates the bumpy descent. The bumpy descent will lead to collapse but the time frame is uncertain as is the manner of the crash. What is clear is this is a globally interconnected world that better cooperate or it will be an ugly divorce.
onlooker on Sat, 5th Sep 2015 8:04 am
“Billions of barrels will never see daylight.”
Agree M, and that may be the saving grace for this planet.
Boat on Sat, 5th Sep 2015 8:21 am
GregT
Latest fill up. $2.06. Once again, that is down from the high of $3.80 not long ago. Regardless of what you think that is an extra almost $5,000 in my pocket if prices hold on for a year. You wanna tell me that ain’t cheap?
Makati1 on Sat, 5th Sep 2015 9:02 am
onlooker, we can only hope it happens soon.
Makati1 on Sat, 5th Sep 2015 9:05 am
Boat, when I started driving, gas was $0.29/gallon. THAT was cheap, or so you would think, but minimum wage was $1.25/hr also. Numbers mean nothing. It is what you have to spend that is real.
bug on Sat, 5th Sep 2015 10:22 am
Boat you must drive a hell of a lot of miles to save 5 grand in gas, or drive a giant motor home, do you use the savings to buy a new auto? Thanks
BobInget on Sat, 5th Sep 2015 10:34 am
Before cell phones became ubiquitous,
a farmer in India had to travel to the nearest village to check market prices.
Today she calls ten retailers for bids.
When Makati and I were growing up on .29 cent a gallon gasoline, our parents had always had hardwired telephones. Unless we grew up in a really big city we drove everywhere in automobiles that if they got ten MPG it was pure luck. Today the average North American teenager makes ten to twenty ‘texts’ before lunch. Kids spend more time on line p/d then Makati or I ever spent driving aimlessly around looking for something ‘to do’. Even ‘girls’ had cars or got the family car evenings. The girls I knew were into horses and had to learn how to back a trailer. Are their grandkids driving? No.
It takes some kids half a day just to tend to
on-line business. No time for the drive-in movie.
BobInget on Sat, 5th Sep 2015 11:09 am
OT:
I’ve already laid down my ‘plan’ for ‘the New OPEC’.
Indeed, it does include Russia and Venezuela.
Reconfigured OPEC also includes Ecuador, Iraq and Iran.
Russians are careful to point out, their aim is only to ‘stabilize’ oil prices. I’ll say.
As for KSA, they started digging graves, their own, in March when bombing Yemen was cause for celebration, their own.
Russia, America and Israel have had their own military disasters. Russia in Afghanistan, America in Vietnam, Afghanistan and Iraq.
Israel in Gaza and West Bank.
Saudis, likewise will be bogged down for years
in Yemen and Syria. The Truth Is Saudi Arabia
early financed, inspired, ISIL as a way to get Iraq and Syria into Saudi orbit. Now ISIL threatens
Saudi dominance.
If nothing else, Russians are great chess players.
marmico on Sat, 5th Sep 2015 11:10 am
It is what you have to spend that is real.
Amazing, a numerate doomer that lives in a low income country.
So the ratio (whatever year it was because I’m too lazy to look up the years and prices but I’ll guess 1960) was 1.25/0.29 = 4.3.
In 2015, the ratio is 7.25/2.50 = 2.9.
I’ll bet you that a 35 year old millennial can travel a further distance westward along iconic Route 66 from Chicago to LA today than the equivalent Brokaw’s greatest generation in superior comfort, safety, entertainment and communications. Real prices and efficiency matter.
Apneaman on Sat, 5th Sep 2015 11:42 am
Except no one in the greatest generation had to worry about the bridges falling down as they drove over them while on vacation. Not safe, not comforting, but very entertaining from where I’m sitting. Enjoy your driving days while they are still available because the combination of head up ass neglect and climate disruption is going to bring it to an end much sooner than most realize.
Already on the periphery roads are not being fixed or repaved and the federal government keeps slapping 3 month band-aides highways because there is no money and they do not know what to do. How very efficient.
Bad bridges: Federal data shows US infrastructure crumbling
“More than 61,000 bridges throughout the United States are “structurally deficient” and in need of serious repair, a national association of builders has warned, citing government statistics.”
http://www.rt.com/usa/246041-deficient-bridges-usa-infrastructure/
onlooker on Sat, 5th Sep 2015 11:52 am
Oh yes I have been hearing of this for awhile now. Makes you think twice about going outside haha.
BobInget on Sat, 5th Sep 2015 11:57 am
NYT: Russia Send Advance Military Team to Syria
http://www.nytimes.com/2015/09/05/world/middleeast/russian-moves-in-syria-pose-concerns-for-us.html?_r=0
I got scolded for posting a story from Tabloid
Telegraph telling us there are Russians in Syria
fighting for Government forces. (against ISIL)
I got ignored for posting an opinion that Russians
in supporting Assad would be in direct confrontation with that great tripartite; Israel, USA and Saudi Arabia.
As it happens USA is busy bombing ISIL in Syria.
so, ‘we are on the same side, right?’
Neither Russia or Israel or USA are majority Muslim nations, correct?
So, What are these three doing getting in between an Islamic kill fest?
Russia and US might say, “to end the fighting and bring this war to an end”.
Who or what will keep Syria’s diverse populations from killing each other?
history:
In English, the name “Syria” was formerly synonymous with the Levant (known in …. in the late 11th century BC, the Aramean tribes gained control of much of the … This language was to remain dominant in Syria and the entire Near East until …
Syrian people – Wikipedia, the free encyclopedia
https://en.wikipedia.org/wiki/Syrian_people
Wikipedia
The dominant racial group is the Syrian descendants of the old indigenous peoples … The name “Syrians” was employed by the Greeks and Romans to denote the … tribes, Assyrians and the Arabs who entered Syria in the Classical antiquity.
Of the Syrian population, 74%[1] were Sunnis (including Sufis[2]), whereas 13%[1] were Shias (including 18.0% Alawites from which about 2% are called Mershdis and they are the followers of Sulayman al-Murshid, 3% Twelvers , or 1% Ismailis ), 3%[1] were Druze, while the remaining 10%[1] were Christians.
Not all of the Sunnis are Arabs. Most of the Kurds, who make up 9% of the population[3] are officially Sunni, as are the Turkmens who encompass 1%.
A striking feature of religious life in Syria is the geographic distribution of the religious minorities. Most Christians live in Damascus, Aleppo, Homs, and other large cities along with significant numbers in Al-Hasakah Governorate in northeastern Syria, Tartus and Latakia. Nearly 90 percent of the Alawis live in the coastal area of the country, namely in Latakia Governorate and in Tartus Governorate in the rural areas of the Jabal an Nusayriyah; they constitute over 80 percent of the rural population of the coastal area. The Jabal al-Arab/Jabal al-Druze, a rugged and mountainous region in the southwest of the country, is more than 90 percent Druze inhabited; some 120 villages are exclusively so.
Davy on Sat, 5th Sep 2015 12:15 pm
Guys do you think this is what Mamico has?
10. Anankastic personality disorder
Anankastic PD is characterized by excessive preoccupation with details, rules, lists, order, organization, or schedules; perfectionism so extreme that it prevents a task from being completed; and devotion to work and productivity at the expense of leisure and relationships. A person with anankastic PD is typically doubting and cautious, rigid and controlling, humorless, and miserly. His underlying anxiety arises from a perceived lack of control over a world that eludes his understanding; and the more he tries to exert control, the more out of control he feels. In consequence, he has little tolerance for complexity or nuance, and tends to simplify the world by seeing things as either all good or all bad. His relationships with colleagues, friends, and family are often strained by the unreasonable and inflexible demands that he makes upon them.
Apneaman on Sat, 5th Sep 2015 1:13 pm
No money for infrastructure, but plenty for useless F-35’s and sports stadiums. Oh well, at least they can put the stadiums to use as a giant temporary sheep pens once TSHTF. Somewhere to corral you til they figure out which FEMA camp you are going to.
Bread & Circuses: The Shady, Slimy & Corrupt World Of Taxpayer Funded Sports Stadiums
http://www.zerohedge.com/news/2015-09-04/bread-circuses-shady-slimy-corrupt-world-taxpayer-funded-sports-stadiums
MrNoItAll on Sat, 5th Sep 2015 1:14 pm
Oh yeah! THAT is marmico!
GregT on Sat, 5th Sep 2015 2:37 pm
“Anankastic personality disorder”
Sounds about right Davy.
onlooker on Sat, 5th Sep 2015 2:54 pm
Yep the US sheep love their sports why do you think it is a multi million dollar industry.
Kenz300 on Sun, 6th Sep 2015 8:39 am
Keep pumping that OIL…….. add to the glut and go broke even faster……..
Electric vehicles and bicycles are the future….